Tim Hortons, one of Canada’s most iconic coffee chains, is raising the cost of its cups of Joe, and some experts say the change was only a matter of time. But how do Torontonians feel about the recent adjustment? 

The price adjustment, which recently took effect across Canada, comes after the restaurant chain decided to approach pricing in a way that aligns with inflation over time, a spokesperson for Tim Hortons told Now Toronto on Monday. 

“This [the price increase] is significantly below inflation and reflects our commitment to great value and everyday low prices for our guests,” the spokesperson said. 

It is the first time in three years that the restaurant chain has adjusted its coffee prices. Tim Hortons says a price increase of 1.5 per cent was “more than reasonable,” compared to the roughly seven per cent rise in inflation observed nationally over the past three years. 

According to the restaurant chain, the price of coffee has more than doubled, increasing from US$158 per 100 pounds to US$390 over the last three years. Tim Hortons says that the price hike amounts to “an average of three cents per cup.” 

The price adjustments come as Starbucks is laying off around 900 non-retail employees and shuttering some locations across the country. 

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EXPERT WEIGHS IN 

But while some continue to question the rising costs, one expert says Tim Hortons’ was a modest, but symbolically significant increase.

“I do think that Tim Horton is under tremendous pressure to keep prices competitive as a result of what’s happening with McDonald’s. McDonald’s still has a very aggressive pricing strategy when it comes to the coffee. It still offers a cup of coffee for $1 clearly, clearly, the chain is losing money. It’s using coffee as bait. So, that pressure is real, and I suspect that’s probably why we didn’t see Tim Hortons increase prices by, say, 10 cents or 25 cents, which would be a typical increase in the past,” Dr. Sylvain Charlebois, a visiting scholar in food policy and distribution at McGill University, told Now Toronto on Monday. 

He says coffee prices have risen 32 per cent in grocery stores since the beginning of the year, with many chains maintaining similar prices despite expectations of a price increase.

Additionally, the self-described “food professor” says the announcement from Tim Hortons may be a precursor to future price hikes, noting the rising cost of coffee worldwide. 

“It’s probably 50 per cent higher than the five-year average, and $3.90 a pound U.S., which is a lot.” 

According to Charlebois, there is an ongoing “third place” battle in the coffee world, a competition for where customers typically choose to get their coffee between home and work. Starbucks long held that role, but with its recent challenges, many customers are on the hunt for a new go-to spot. As a result, he says several companies are competing for the top position in the daily coffee market. 

LOCALS SHARE THEIR THOUGHTS 

Meanwhile, Now Toronto hit the city streets to ask residents how they feel about the recent price hike at the major coffee chain. 

Toronto local Blair S. says that while the price increase is not ideal, he understands the need for it amid rising inflation, noting that he does not often turn to the coffee chain when he’s in need of a cup of Joe. 

“I kind of only go to Tim Hortons as a last resort in many ways, but if it’s there and it’s the only option, that’s what I’ll do and it’s not going to change.” 

For Justin F., the price adjustment seems fair, but he says  if other companies, like McDonald’s, can keep their prices low, then Tim Hortons might be able to “eat the cost of” the coffee. 

And while he frequents the iconic burger spot for his coffee fix, he says he would start brewing his own coffee at home should prices ever rise. 

“It’s a costly business, like whatever makes sense to them.” 

Local Brad D. says the price hike does not bother him much, as the cost of living is rising in general. And while he doesn’t frequent Tim Horton’s often, he has no problem paying a little more for their freshest brew. 

“They’ve already got pretty reasonable prices to begin with, so it’s not a big deal.”

When asked about the recent price adjustment, Suzanne N. has a different sentiment. She says the price increase may affect her monthly budget, noting that coffee is essential to help her stay focused throughout the work day. 

“Of course, the better option is to buy your own coffee at home and then maybe go to Tim Hortons twice a week. Why would I go Monday to Friday? It’s going to cost us a lot.” 

For Alex N., local coffee may be the best bet when it comes to quality, but says Tim Hortons should be an economical option. Additionally, if the local shops he frequents were to increase their prices, he says he may not stop by as much. 

“It is an issue of convenience. It is more convenient sometimes to grab a cup of coffee as opposed to making your own. But I could see more people making their own coffee as opposed to going out and getting coffee at coffee shops.”